Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss

question 8

Multiple Choice

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss As shown in Exhibit 3A-2, if the market price falls from P₁ to P₂, then:

• A)total surplus increases.
• B)deadweight loss increases.
• C)overproduction increases.
• D)underproduction decreases.

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